Liver alcohol dehydrogenase is reversibly inactivated by pyridoxal 5'-phosphate. When the enzyme is saturated with pyridoxal-P the residual activity is about 2001,. The enzyme can be completely inactivated by successive covalent labelling with pyridoxal-P, using sodium borohydride reduction. A maximum of about 11 pyridoxal-P groups per subunit were covalently incorporated into the enzyme.The binding to the enzyme of several known inhibitors was investigated by studying their effect on the reversible inactivation of the enzyme by pyridoxal-P a t pH 8.0. The effect of these ligands on the activation of the enzyme by methyl picolinimidate was also studied. AMP protected competitively against inactivation by pyridoxal-P and also protected strongly against activation by methyl picolinimidate. After picolinimidylation of the enzyme the binding of AMP a t pH 10 was 8-fold weaker.AMP and NADH both protected one lysine residue per subunit from reaction with pyridoxal-P . It is concluded that there is one lysine residue a t the active centre of the enzyme and that this lysine plays an important part in binding the coenzyme by attracting the phosphate group of the AMP moiety of the coenzyme. Coenzyme binding to the picolinimidylated enzyme is weakened by steric interference between the picolinomidylated active-centre lysine and the AMP moiety of the coenzyme. Since effects of neutral zinc-binding ligands cannot be explained by steric or electrostatic effects, it is suggested that they produce conformational changes in the enzyme, perhaps by binding a t a site other than the active-centre zinc atom.